Bombardier boosts free-cash forecast amid strong demand for business jets

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The Montreal-based plane maker expects to generate US$515-million of free cash for fiscal 2022, 10 times what it previously expected

Bombardier Inc. says it will generate more than half a billion dollars of free cash this year, 10 times what it previously expected, as the Canadian plane maker shakes off recession worries and taps a still-strong market for luxury jets.

After years of turmoil at Bombardier that saw it teeter on the verge of bankruptcy, Mr. Martel is trying to stage a recovery for the industrial giant that hinges on a slimmed-down business model focused solely on selling and servicing private jets. Second-quarter financials reported Thursday suggest the effort is on track.

The company continued to book new business in the quarter and boosted its backlog of orders not yet fulfilled by 37 per cent year-over-year, to US$14.7-billion. Its book-to-bill ratio was 1.8 during the period, meaning it is receiving close to twice as many new orders than it is currently shipping out.

It has also benefitted from the sustained wealth among its billionaire clients, who have been less affected by the aftermath of Russia’s war on Ukraine and rising inflation than the average person.

 

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A lot of rich elites, like justintrudeau, like to jet-set around the world. Carbon footprints don’t apply to them.

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